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Break-Even Calculator
Calculate break-even point for your business
Business Costs & Pricing
$
Rent, salaries, utilities
$
Materials, labor per unit
$
$
Optional profit goal
Break-Even Units
400 units
📦
Break-Even Revenue
$16,000
💰
Contribution Margin
$25
Per unit profit
📊
Margin Ratio
62.5%
📈
To Reach Target Profit of $5,000/month:
Units needed:
600 units
Revenue needed:
$24,000
Break-Even Analysis
Break-even point: Where Revenue line crosses Total Costs line
Cost Breakdown
At Break-Even (400 units)
Revenue:$16,000
Fixed Costs:$10,000
Variable Costs:$6,000
Profit/Loss:$0
Per Unit Economics
Selling Price:$40.00
Variable Cost:$15.00
Contribution Margin:$25.00
Margin Ratio:62.5%
Understanding Break-Even Analysis
Key Concepts
- Fixed Costs: Costs that don't change with volume
- Variable Costs: Costs per unit produced
- Contribution Margin: Price - Variable cost
- Break-Even Point: Where revenue = total costs
Formula
Break-Even Units = Fixed Costs ÷ Contribution Margin
- Higher price = lower break-even point
- Lower variable costs = lower break-even
- Lower fixed costs = lower break-even
- Aim for high contribution margin ratio